Hydromer, Inc. enters
into a Strategic Development Agreement with N8
Medical Inc. for a new class of antimicrobial
coatings

Branchburg,
June 26, 2012 ---Hydromer, Inc. (HYDI.PK) and N8 Medical,
Inc. have entered
into a Supply
and Support Agreement.

Under
the terms of this agreement, both parties will
work together to jointly create and commercialize
new antimicrobial coatings for the medical device
market.The
parties seek to capitalize on Hydromer’s
leadership in medical grade polymeric coating
technology in combination with N8 Medical’s novel
class
of compounds known as Ceragenins or CSAs.
Ceragenins are patented synthetic peptidomimetic
compounds licensed from Brigham Young University
by N8 Medical that mimic the polyfunctional and
broad spectrum activity of a key component of the
human innate immune system. This new Ceragenin
technology is targeted at combating
hospital-acquired infections (HAI’s).

Testing has shown that
coating approaches combining Hydromer technology
and Ceragenins are highly effective in combating
biofilms and a broad spectrum of microbes, and
thus have the potential to significantly reduce
HAIs, thereby possibly saving patients’ lives,
reducing morbidity and saving healthcare systems
worldwide billions of dollars annually.
CSA-13, one of the lead Ceragenin compounds, has
exhibited potent antimicrobial properties and is
rapidly bactericidal, fungicidal and virucidal
against a wide array of pathogens, including
multidrug resistant strains of
Methicillin-resistant Staphylococcus
aureus (MRSA) and Pseudomonas
aeruginosa. CSA-13 has also
demonstrated the ability to both prevent and
eradicate bacterial and fungal biofilms, which are
nearly impossible to eradicate utilizing
conventional antibiotics.Both
parties will cooperate to facilitate regulatory
approvals of products that combine the Hydromer
technology and Ceragenin technology around the
world.

“We
are delighted with this synergetic relationship
that capitalizes on our combined strengths and
focuses on one of the most important
under-addressed concerns in the medical community,
HAI’s”, commented Martin von Dyck, Executive Vice
President of Hydromer, Inc., adding, “Together,
with Hydromer’s global sales network with direct
access to the major medical device manufactures in
the world, we are correctly positioned for
efficient market coverage.”

“The
combination of our technologies has game changing
potential in the antimicrobial medical coatings
space and the potential to achieve dramatic
savings for healthcare systems” stated David J.
Richards, Chief Executive Officer of N8 Medical.
“Our results to date have been exceptional and we
are thrilled to partner with Hydromer to swiftly
advance this technology to market.”

About
Hydromer, Inc.:Hydromer,
Inc.
is a bio-technology-based company involved in the
research and development, manufacture, contract
coating and commercialization of specialized
polymer and hydrogel products for medical device,
animal health, cosmetic, personal care, and
industrial uses.

About
N8 Medical, Inc: N8 Medical, Inc.is an emerging biomedical technology
company focused on creating innovative medical
devices and pharmaceuticals to effectively combat
a broad spectrum of infectious diseases and
microbes, including those attributable to
multidrug resistant bacteria. N8 Medical’s core
technology is a new class of patented synthetic
antimicrobial compounds known as Ceragenins. N8
Medical is a privately held, private equity-backed
entity. The Ceragenin technology is for
investigational use only.Specific
applications for the technology require requisite
regulatory approval.